The registration for IPO on the STAR Market of domestic AI chip unicorn Suiyuan Technology has become effective.
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On July 9, the official website of the Shanghai Stock Exchange showed that the IPO review status of Shanghai Enflame Technology Co., Ltd. on the STAR Market had changed to registration effective. Under the operation of its sponsor, CITIC Securities, this chip company, which took less than half a year from acceptance to registration, is about to officially enter the public market.
This means that the four startups known as the “Four Small Dragons of Domestic GPU”—Moore Threads, MetaX, Biren Technology, and Enflame Technology—are all about to enter a new stage of capitalization.
In terms of business direction, Enflame Technology focuses on the development of cloud AI chips and intelligent computing clusters, aiming to provide underlying computing infrastructure for general artificial intelligence. Unlike many peers adopting GPGPU architectures, Enflame Technology has chosen a fully self-developed DSA (Domain Specific Architecture) route and launched the “Yusuan” software platform.
This differentiated technology path avoids direct competition with mainstream ecosystems to some extent, but it also means extremely high initial R&D costs and a high threshold for ecosystem construction.
Financial data disclosed in the prospectus shows that Enflame Technology is still in the commercialization stage characterized by high investment and high losses.
From 2023 to 2025, the company’s operating revenue maintained growth, at 301 million yuan, 722 million yuan, and 990 million yuan respectively. However, net losses attributable to parent company shareholders during the same period were 1.665 billion yuan, 1.51 billion yuan, and 1.164 billion yuan, with a cumulative three-year loss exceeding 4.3 billion yuan.
The core reason for the losses is the high research and development expenditure. During the reporting period, R&D investment reached 1.229 billion yuan, 1.312 billion yuan, and 1.135 billion yuan, with R&D spending far exceeding operating revenue each year.
Apart from the continuing pressure of losses, Enflame Technology’s heavy reliance on a single customer is a core business risk factor. Tencent is not only Enflame’s largest shareholder, holding a total of 20.26% of shares, but also its largest customer. Data shows that in 2025, Enflame’s sales to Tencent accounted for as much as 83.79% of total revenue.
In addition, the company is also facing practical challenges in cash flow and assets. From 2023 to 2025, the net cash flow from operating activities remained negative, with a cumulative net loss exceeding 4.3 billion yuan over three years.
By the end of 2025, the company’s inventory balance reached 863 million yuan, almost equal to its full-year revenue for that year; at the same time, the provision ratio for bad debts of accounts receivable rose to 24.76%. These financial indicators suggest that behind the growth in reported revenue, the company’s ability to collect payments and manage cash flow is under significant pressure.
It is understood that Enflame Technology’s IPO aims to raise 6 billion yuan, which will mainly be used for the R&D and industrialization of fifth- and sixth-generation AI chips.
For Enflame Technology, obtaining a STAR Market entry ticket addresses its short-term capital needs, but in the increasingly competitive compute chip market, how it gradually reduces dependence on a single related party for “blood transfusion”, improves cash flow, and proves the self-sustaining ability of its business model to the market will be long-term challenges it must face after listing.
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